At a certain point in every one's life there arises a question - should I buy or rent a home? You have been renting in different parts of state/country depending on where you are working and now you have reached a point where you are wondering whether it is time to settle down in one place. If you are hearing the siren song of "buy your own home" then it is time you really did so. It happens to everyone who has been renting for decades. The urge of having your own kind of bathroom, a kitchen that you designed, a living room that is a bit more spacious - these dreams never cease to end. Having a home of your own is a primal urge, hence it is perfectly natural. People opposed to renting would say that renting is like throwing away money, while buying is an investment in itself. Once you realize that you have a stable income and at least two steady jobs between you and your spouse, and then it is time to put down your roots. The tables may have changed ever since 2008 and people are getting extremely cautious when the question of homeownership arises, but the tide is slowly changing, and owning a home is now no longer a nightmare.
Currently, reports have come in that buying is cheaper than renting. Whether you go for the 30-year mortgage or the 15-year one is entirely up to you, but buying has allowed several homeowners, even first timers, to plan their finances in a better way. If you fall in love with a home, don't wait for the right moment, because it may never come. If you are worried about the mortgage, you can always shop and compare to get the best rates in the market.
It is not all about predicting the market...
Many people advice you to study the market and the mortgage rates before you think of investing in a home. However, there is one more thing you have to consider, to ensure your peace of mind - your state of mind itself. Buy a home only if you are emotionally up to it. Many people dip into their savings, sign on the dotted line and close the deal. Hours after that they lament that they prefer not to have a home, prefer to sell the house the very next day, put the money in the bank and start renting as before. It is not a joke, many people do feel that way. Some people become so obsessed with their home that they worry about floods, earthquakes and other natural calamities and keep checking for calamity reports.
While buying and renting are decisions brimming on controversy, there are times when you should not buy a home. For example, if you don’t plan to live in a particular place for more than 2 years. Given such a short time it would be difficult to build equity. It is also not advisable to buy a home if you are traveling constantly. However, if you still feel like owning your own private space, then buy a condo.
Anyway, you may have to buy a house, eventually. So why not make it now? Do you want to pay the rent when you are 80 and you have no more income? So it is better to buy a home when you are young, take care of the mortgage, pay them all off while you are still working and reap the rewards when you retire. Thanks to decreasing mortgage rates, buying would be a better idea now, as most of the homes are 38% cheaper.